Price Check SC 2450

[Scrambler82]

That guys, my local dealer are all to high on price!!!

KC

This is a little older post but I just noticed the previous post.
Why is it everyone says (like me) the local guys are high and won稚 deal and yet (like me) most can find an out of state Supplier to get a good price ?

Wouldn稚 it seem more advantageous for the local guys to give better prices and keep the money at home ?

Is it me or is this really happening ?

 

[EFC]

I know it seems like "local dealer greed" but the reality is there is always a dealer somewhere in the country that just hasnt done the math. I look at the #'s posted here and I continually see people buying at less than dealer cost. If you find a tractor in Tenn for a thousand less than I can buy it (even with high volume discounts) then my price is going to look high even though it might be just what it needs to be to keep the lights on.

I met a new tractor dealer at the Cub dealer convention last year. He has been a lawn tractor dealer his whole life. According to him he had retailed 80 tractors in his first year and had only lost about 60K. In other words he had lost about $750 per tractor. I asked why he was selling at a loss. He said he was building market share and like his lawn business was sure he would make it up in the shop. He was concerned though since most of his sales were many states away and so far he hadnt had one in for service. I met three other dealers just like this one. Compact tractors are not lawn equipment. The breakdown rates are so low I very rarely see a late model that I sold in for service and never outside of the warranty. If cars were built and used like compact tractors you would only need to buy one or two in your lifetime and that doesnt fill a service bay.

You will always find the fire sale or poor business plan if you look hard enough but that doesnt mean your local dealers prices are high. In fact they might be right in line with the value of the item. And if you actually met the people who own these dealerships you would find on average that they are not driving home in a Mercedes.

Buck

 

[Scrambler82]

EFC, I understand what you are say and I am not saying the guys should lose money.
It is happening more and more in posts like these and in times like these that businesses do not want to tighten their belts.
Does a business want the business with possible future sales or no sale at all and the buyer goes elsewhere to buy attachments too, probably aftermarket.
Lean times mean lean prices, the out of state guys understand, sell to someone 150 miles away, make what you can to keep volume up and not worry about servicing because the buyer will never come back.

I for one am on the edge to buy, if the local guy had come down I would have a tractor now but I am still hedging the bet he will drop when the 2450 gets on the showroom floor.

 

[EFC]

Tractor margins are not like cars and there is no magic with volume. I remember the year I sold 300 tractors and lost money. My cost per unit went up with volume, more employees, more trucks more overhead and way more headaches. I actually make more money per unit at the same price selling less volume. You cannot make it just selling tractors or just doing service. It has to be a fair balance between the two. If a customer will go out of state to buy a tractor they will go out of state to buy everything if its a lower price, even as low as a dollar. Buying their business just doesnt make sense.

Lets put it to you another way that is a little more personal. Your boss comes in and says "its lean times men! Who is willing to continue working here without pay? Now before you run out the door there is a possibility you will get a paycheck down the road but no promises" What would you honestly say? I already know the answer but it is exactly what you are asking of a dealer. You shouldnt at all be surprised when he walks the other way. Please know I am not beating up on you I just get the opportunity to see both the consumer side (which I am) and the dealer side which I am also. And I can say without a doubt during lean times making money on each and every sale becomes top priority. It is during the times of plenty that we can take the lower margin deals because we know we can make up on the next sale.

Obviously you shouldnt let people take advantage of you either and if your dealer is selling at retail plus 20% run away. Which model were you looking at and what is your dealers price? Also which financing plan did you plan to use. Some cost the dealer as much as 3.5% right off the top.

Buck

 

[Scrambler82]

I hear what you are saying and sent an e-mail to the local dealer but no response from him, probably pissed BUT
There is a Fair coming up I might wait a little bit.

Thanks for the input.

Tractor margins are not like cars and there is no magic with volume. I remember the year I sold 300 tractors and lost money. My cost per unit went up with volume, more employees, more trucks more overhead and way more headaches. I actually make more money per unit at the same price selling less volume. You cannot make it just selling tractors or just doing service. It has to be a fair balance between the two. If a customer will go out of state to buy a tractor they will go out of state to buy everything if its a lower price, even as low as a dollar. Buying their business just doesnt make sense.

Lets put it to you another way that is a little more personal. Your boss comes in and says "its lean times men! Who is willing to continue working here without pay? Now before you run out the door there is a possibility you will get a paycheck down the road but no promises" What would you honestly say? I already know the answer but it is exactly what you are asking of a dealer. You shouldnt at all be surprised when he walks the other way. Please know I am not beating up on you I just get the opportunity to see both the consumer side (which I am) and the dealer side which I am also. And I can say without a doubt during lean times making money on each and every sale becomes top priority. It is during the times of plenty that we can take the lower margin deals because we know we can make up on the next sale.

Obviously you shouldnt let people take advantage of you either and if your dealer is selling at retail plus 20% run away. Which model were you looking at and what is your dealers price? Also which financing plan did you plan to use. Some cost the dealer as much as 3.5% right off the top.

Buck